5 Thumb Rules For Millennials Purchasing Health Insurance Policies For Parents?

All throughout our childhood and even the growing years, our parents leave no stone unturned to take care of us, right? And quite naturally, when we grow up and become financially independent, we keep finding ways to do whatever is possible to take care of our parents, isn't it?

But we, as millennials, should understand that what is more important than any fancy gift is the gift of getting them medically insured. After all, health is wealth!

We all agree that with increasing age, the list of ailments tends to get elongated, and the risk of repeated hospital visits goes up too. So doesn't it make sense to get your parents, especially if they are senior citizens, i.e., aged 60 or above, adequate health insurance?

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But before you jump onto any health insurance policy, let us explain to you five unmissable thumb rules to keep in mind when buying it for your parents.

1.Terms and conditions regarding pre-existing illness

Firstly, when buying medical insurance for your parents, note that your parents might have some pre-existing illnesses, such as diabetes, high blood pressure, arthritis, etc.

It's crucial to check the insurance policy¡¯s terms and conditions regarding pre-existing illnesses, i.e., whether the pre-existing illnesses are covered or not, and if yes, then also note the waiting period for each of them, the co-payment clauses etc. Prefer finalising a policy that covers more pre-existing illnesses, has a shorter waiting period, and allows you to choose whether or not to use the co-payment clause.

2.Coverage for in-patient hospitalisation expenses

Inpatient hospitalisation coverage is given by the insurance company for the medical expenses incurred by the policyholder when he/she has been admitted to the hospital for more than 24 hours. It should ideally cover all hospital expenses, from nurses¡¯ expenditure, doctor and specialist fees, to medicines.

But when it comes to buying it for senior citizens, some medical policies tend to have sub-limits for certain expenses. For example, for some insurance plans, in-patient hospitalisation may be covered, but there might be a presence of sub-limits on doctor fees. That's why it is crucial to look carefully at the sub limits as well, if any, when finalising a policy and prefer the one providing maximum coverage.

This is even more important in the case of senior citizens, as the number of hospital stays might be higher at that age.

Also Read: How Japan Solved V-Day Disasters Through Valentine's Insurance!

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3.Examining the waiting period, co-payment, sub-limits, and exclusions

Reading the policy wordings to understand the waiting period, co-payment, exclusions, and sub-limits is an extremely important step when purchasing a policy for your parents.

Let's understand these one by one.

Co-payment clause

As the name suggests, co-payment is a clause where you have to pay for a share of the insurance claim from your own pocket. So, when you claim, you have to bear a part of the amount, maybe 20% or 30% while the rest is paid by the insurance company.

As far as senior citizens are concerned, remember that most senior citizen medical claims come with a co-payment clause, and that clause is generally related to the waiting period offered in the plan. And, more often than not, the shorter the waiting period, the greater the portion of the co-payment you must pay out of pocket.

Waiting Period

This is like a hibernation period during which no insurance claims are admissible. This clause tends to be applicable if you have a pre-existing illness. Normally, for any health insurance policy, the waiting period may be as low as one year but as high as four years too.

For medical insurance for senior citizens, there is a silver lining as many insurance companies have brought down the waiting period to as low as one year. This is primarily because, in the case of senior citizens, the need for immediate hospitalisation is usually greater. As a thumb rule, the lower the waiting period, the better it is.

Exclusions

The next thing to focus on, are the exclusions.Many medical insurance policies, especially for senior citizens, come with exclusions, i.e., medical conditions or healthcare expenses that would not be covered by your health insurance policy. To understand these, it's better to read the fine print of the policy. Go for that medical policy which has a nil or minimum number of exclusions.

Sub-limits

A sub limit pertains to a cap on how much you, as a policyholder, can claim for a particular expense or procedure. Any amount that goes beyond that sub limit has to be borne by you. Even for senior citizens, health insurance policies do tend to come with certain sublimits. For example, cataract surgery may have a specific sub-limit, while knee-cap surgery or kidney dialysis may have a sub-limit regarding the amount you can claim for it.

So, rather than being surprised later on, it's best to carefully read the policy wordings to understand which are the procedures/treatments that have sub limits.

Also Read: 7 Benefits Of Buying Health Insurance Right Away

4.Limitations on post-hospitalization expenses

As the name suggests, this pertains to the reimbursement of any expenses incurred by the policyholder after being discharged from the hospital.

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These expenses should be directly attributable to the illness or injury for which the patient was admitted. Typically, in most medical insurance policies, the post-hospitalisation eligibility is between 60 and 90 days.

However, when it comes to senior citizens, many health insurance policies trim down the post-hospitalisation period and also offer lower coverage. So it's best to check the terms and conditions applicable before zeroing in on any policy.

5.Restrictions on day-care hospitalisations

Another aspect to factor in is the procedures that can be completed in less than 24 hours at a hospital. For example, cataracts, dialysis, chemotherapy sessions, etc. Check whether the policy has any restrictions on the number of daycare hospitalisations that it covers. Remember that although most health insurance policies for senior citizens do cover daycare facilities, some plans tend to restrict that number.

So, before buying any health insurance plan, ensure that you are aware of the number of daycare facilities covered under the policy. For the daycare hospitalisations that are beyond that number, you are likely to have to pay for them entirely by yourself.

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